SOURCE: CNH

CNH

January 25, 2010 05:54 ET

CNH Closes Full Year 2009 With Positive Operating Result and Strong Cash Flow

BURR RIDGE, IL--(Marketwire - January 25, 2010) - CNH Global N.V. (NYSE: CNH)

--  Full Year Operating Profit of $373 million for Equipment Operations
--  Fourth Quarter EPS, before restructuring, after tax, of $0.20
--  Equipment Operations exceed target with $1.2 billion reduction of Working
    Capital
--  Equipment Operations end year with $530 million net cash position
--  CNH Capital completes 15 funding transactions in fourth quarter
    

CNH Global (NYSE: CNH) today announced 2009 financial results. Net Sales declined 26% to $12,783 million for the full year as the industry faced a global slowdown. In the face of this decline, the Company put in place tight cost controls which delivered an Operating Profit of $373 million from Equipment Operations for the full year, which was down 75% from the same period in 2008. The volume decline combined with the drive to reduce inventories were the primary factors in the decrease in Operating Profit from Equipment Operations. Net Loss Attributable to CNH, Before Restructuring, After Tax, came to ($0.48) per share compared to net income of $3.59 per share for the full year 2008, and $0.20 for the fourth quarter before restructuring, after tax, compared with $0.49 for the same period a year earlier, on a fully diluted basis.

CNH drove down costs in 2009, including an 18% reduction in SG&A expenses for Equipment Operations. The company reduced its overall work force by 13% and cut other operating costs. The company continued to invest in products, although R&D expenditures were reduced by 6% as the company was able to leverage engine technology from Fiat's FPT Powertrain Technologies and advanced design technology to cut development time and costs.

Equipment Operations generated $1.1 billion in cash from operating activities over the year. CNH exceeded its working capital reduction target for the full year, delivering $1.2 billion in cash flows through strict management of working capital, centered around a $1.4 billion reduction of inventory. CNH Equipment Operations improved its net cash position by $953 million, ending the year with a net cash position of $530 million, compared to a net debt position of $423 million at the same time a year earlier. "In the face of the global economic slowdown, we set a clear target focusing on cash flow. We put in place clear action plans, and today's results clearly demonstrate disciplined execution of those plans," said Harold Boyanovsky, CNH President and CEO. "As we begin 2010, we will continue our focus on working capital management and tight cost controls to ensure we can take full advantage of the economic recovery, when it comes, to rebuild our profit margin and retain our ability to generate cash."

As credit markets improved, CNH Capital successfully completed 15 financing transactions in the fourth quarter totaling $4.5 billion, which generated $1.1 billion of incremental cash. CNH Capital demonstrated that, even in the current environment, it has the ability to fund its operations, and do so on terms which allow it to be competitive in the wholesale and retail financing markets.

The Net Loss Attributable to CNH was $(190) million in 2009 compared with net income of $825 million in 2008. These results include after tax restructuring charges of $75 million compared to $28 million in 2008. Diluted Net Loss Per Share Attributable to CNH Common Shareholders, Before Restructuring, After Tax, was $(0.48) for 2009, compared with net income of $3.59 in 2008. The Diluted Net Loss Per Share Attributable to CNH Common Shareholders was $(0.80) for 2009, compared with net income of $3.47 in 2008.

CNH's 2010 outlook is for global agriculture markets to decline approximately 5%-10%. CNH's outlook also calls for construction equipment markets globally to increase approximately 5%-10% during 2010.

               Fourth Quarter and Full Year 2009 Highlights

    (Unaudited, US$ in millions, except per share data and percents)

               Quarter Ended                  Full Year Ended
           --------------------- Percent   ---------------------  Percent
           12/31/2009 12/31/2008  Change   12/31/2009  12/31/2008  Change
           ---------- ---------- -------   ----------  ---------- -------

Net Sales
 of
 Equipment $    3,213 $    3,662   (12.3)% $   12,783  $   17,366   (26.4)%
Equipment
 Operations
 Operating
 Profit    $      101 $      299   (66.2)% $      373  $    1,487   (74.9)%
Financial
 Services
 Net
 Income    $       96 $       51    88.2%  $      174  $      242   (28.1)%
Net Income
 (loss)
 Attribut-
 able to
 CNH       $       28 $      114   (75.4)% $     (190) $      825  (123.0)%
Restructur-
 ing
 (After
 Tax)      $       19 $        3   533.3%  $       75  $       28   167.9%
Net Income
 (loss)
 Before
 Restruct-
 uring,
 After Tax,
  Attribu-
  table to
  CNH      $       47 $      117   (59.8)% $     (115) $      853  (113.5)%
Diluted
 Earnings
 (loss)
 Per Share
 (EPS)*    $     0.12 $     0.48   (75.0)% $    (0.80) $     3.47  (123.1)%
Diluted
 EPS
 Before
 Restruct-
 uring, 
 After
 Tax*      $     0.20 $     0.49   (59.2)% $    (0.48) $     3.59  (113.4)%

* Attributable to CNH Global N.V. Common Shareholders


Fourth Quarter Brand Activities

Case IH Agriculture released the new Magnum continuously variable transmission (CVT) 180, 190, 210 and 225 for the North American market. The range features CVT, the multi-control Armrest and includes a 225 HP model. Updates of the Puma 125, 140 and 155 were launched with new A-pillar instrumentation and new hood styling, while the 155 model powers up to a maximum of 192 HP. The Maxxum 110-140 was also updated to include the multi-control Armrest, new A-pillar instrumentation and hood styling. The brand also entered the all-terrain-vehicle (ATV) market with the launch of its Case IH Scout and Scout XL.

New Holland Agriculture launched its new T6000 Range & Power Command tractor with increased power compared to the previous model, including a 165 HP engine with 200 HP maximum boost power. This gives the T6090 the best power-to-weight ratio in the segment. New Holland also introduced the new Workmaster 45/55 series in North America which includes a four-wheel-drive model and forward/reverse synchronized shuttle. The Boomer range added the 3000 Series CAB with EasyDrive CVT for a comfortable car-like drive and reduced noise levels. It also features the largest cab in its class.

New Holland Agriculture strengthened its position in international markets with new releases including an extended range of orchard tractors. The TDF series serves countries with specific needs such as those with orchards, olive groves, wide vineyards and full-field horticulture. In India, to serve the rapidly growing low horsepower segment, New Holland introduced three models of its TT range tractor with power from 35 to 50 HP, in 2-wheel and 4-wheel drive models.

Fourth Quarter and Full Year 2009 Net Sales - Equipment Operations

Net Sales of
 Equipment
(Unaudited,
 US$ in
 millions,        Quarter Ended                 Full Year Ended
 except       --------------------- Percent  --------------------- Percent
 percents)    12/31/2009 12/31/2008 Change   12/31/2009 12/31/2008 Change
              ---------- ---------- ------   ---------- ---------- ------

Agricultural
 Equipment    $    2,626 $    2,967  (11.5)% $   10,663 $   12,902  (17.4)%
Construction
 Equipment           587        695  (15.5)%      2,120      4,464  (52.5)%
              ---------- ----------          ---------- ----------
Total Net
 Sales of
 Equipment    $    3,213 $    3,662  (12.3)% $   12,783 $   17,366  (26.4)%


Agricultural Equipment's Net Sales declined by 11% in the fourth quarter compared with the same period a year earlier and 17% for the full year compared with 2008. The primary driver for the decrease was lower volumes in all regions which outweighed positive pricing and foreign exchange impacts. For the full year, worldwide agricultural industry unit sales declined 7% compared to the record year of 2008. Combines were down 19% and tractors down 7% as the global economy slowed and global credit conditions generally tightened.

CNH market share for combines in the fourth quarter was up in every region except Rest of World. For the full year, in the global market for combine harvesters, CNH share increased in Latin America, was stable in Rest of World and in Western Europe and decreased in North America (with gains in the higher end segment). In the fourth quarter, market share for CNH tractors was flat in every region except Latin America. In the over 40 HP tractor segment in North America, however, CNH outperformed the market and gained market share. For the full year, North America, Western Europe and Latin America were flat, while the Rest of World was down.

Construction Equipment's Net Sales declined 16% in the quarter, and 53% for the full year compared with 2008. For the full year, weakness continued in the construction equipment industry which was down 38% worldwide in 2009 with the light equipment industry down 45% and the heavy industry down 30%. CNH market share was flat in North America and declined in all other regions with the exception of Latin America, where it increased. The company continued to cut inventories, under-producing retail sales by 51% for the full year. Construction Equipment continued to focus on parts and service operations supporting dealers and customers through the economic slowdown.

Equipment Operations Gross Profit and Margin


Equipment             Quarter
 Operations            Ended                  Full Year ended
                   ------------               ----------------
(Unaudited, US$ in
 millions, except  12/31/ 12/31/              12/31/   12/31/
 percents)          2009   2008   Change       2009     2008    Change
                   -----  -----  ---------    -------  -------  ------

Gross Profit       $ 523  $ 732      (28.6)%  $ 1,921  $ 3,312   (42.0)%

Gross Margin        16.3%  20.0%      (3.7) pts  15.0%    19.1%   (4.1) pts


Equipment Operations' Gross Profit in the fourth quarter was $523 million, down 29% from the same period in 2008. Gross Margin was 16.3% in the fourth quarter of 2009 compared with 15.1% in the third quarter of 2009, and 20.0% in the fourth quarter of 2008. CNH continued to achieve positive pricing in the quarter, but not enough to offset lower sales volume. For the full year 2009, Equipment Operations' Gross Profit was $1,921 million or 15.0% of sales, compared with $3,312 million or 19.1% of sales for the full year 2008.

Equipment Operations Operating Profit and Margin

Equipment Operations

Operating
 Profit and
 Margin
(Unaudited,
 US$ in        Quarter Ended                 Full Year Ended
 millions,    ---------------                ---------------
 except     12/31/2009  12/31/2008        12/31/2009   12/31/2008
 percents)                      Change                          Change
              ------   ------  --------     ------   -------  --------

Agricultural
 Equipment    $  167   $  346     (51.7)%   $   712   $ 1,371    (48.1)%
Construction
 Equipment       (66)     (47)      40.4%      (339)      116   (392.2)%
              ------   ------                ------   -------
Total
 Operating
 Profit       $  101   $  299     (66.2)%   $   373   $ 1,487    (74.9)%

Agricultural
 Equipment       6.4%   11.7%      (5.3) pts    6.7%     10.6%    (3.9) pts
Construction                                                 
 Equipment     (11.2)%  (6.8)%     (4.4) pts  (16.0)%     2.6%   (18.6) pts
Total
 Operating
 Margin          3.1%    8.2%      (5.1) pts    2.9%      8.6%    (5.7) pts


Operating Profit for Equipment Operations was $101 million, or 3.1% of Net Sales, in the fourth quarter, compared with $299 million, or 8.2% of Net Sales, in the fourth quarter of 2008. For the full year, Equipment Operations reported $373 million in Operating Profit which was 2.9% of Net Sales. Agricultural Equipment Operating Margin remained steady from the third to the fourth quarter at 6.4%. Construction Equipment Operating Margin improved 6.2 percentage points to (11.2%) from third quarter to the fourth quarter, consistent with the industry view that the decline in the construction market could be moderating.

The company executed strict cost controls throughout the year. The salaried and agency workforce was reduced 13% for the full year, SG&A expenses were reduced $24 million or 7% in the fourth quarter compared to the same period of 2008, and $253 million or 18% for the full year. R&D expenditures were $13 million higher compared with the fourth quarter of 2008 and $24 million lower for the full year, reflecting cost savings as the company leveraged synergies through FPT Powertrain Technologies on costs for Tier IV engine development. Additionally, logistics costs decreased as the new parts and service depots opened in Sorocaba, Brazil and Portland, Oregon, utilizing the latest technology to increase efficiency and speed the order to delivery process.

Fourth Quarter and Full Year 2009 Operating Review - Financial Services

Financial
 Services
 Highlights
(Unaudited,
 US$ in
 millions,        Quarter Ended                 Full Year Ended
 except       --------------------- Percent  --------------------- Percent
 percents)    12/31/2009 12/31/2008 Change   12/31/2009 12/31/2008 Change
              ---------- ---------- ------   ---------- ---------- ------

Net Income
 Before
 Restructuring,
 After Tax    $       96 $       54   77.8% $      177 $      245   (27.8)%
On-Book Asset
 Portfolio    $    8,171 $    9,825  (16.8)% $    8,171 $    9,825  (16.8)%
Managed Asset
 Portfolio    $   17,257 $   17,524   (1.5)% $   17,257 $   17,524   (1.5)%


For the fourth quarter, Financial Services' Net Income Before Restructuring, After Tax, was $96 million, compared to $54 million in the respective period a year earlier. Results were higher for the quarter mostly due to increased ABS gains and partially offset by lower net interest margins and lower average levels of on-book receivables.

For the year, Net Income Before Restructuring, After Tax, was $177 million, down from $245 million from a year ago. Net income was lower for the full year primarily due to a higher provision for credit losses, lower net interest margins, and lower average levels of on-book receivables, partially offset by higher gains from ABS transactions. Year to date provisions for credit losses increased from $98 million in 2008 to $169 million in 2009, due to the downturn in the U.S. and European construction equipment markets and additional reserves recorded for Brazil's retail agricultural equipment portfolio. The quality of the North American agricultural equipment portfolio remained high.

During the fourth quarter, Financial Services closed 15 funding transactions totaling $4.5 billion globally. Of these transactions, 11 were in North America and generated $1.1 billion of incremental cash.

For the year, Financial Services closed funding transactions totaling $10.3 billion, with credit market conditions improving as the year progressed. Financial Services will continue to access a combination of the ABS and private bank markets, as well as factoring programs, to finance its ongoing business and further diversify its funding sources.

Financial Services reduced its on-book portfolio by 17% from December 31, 2008. This reduction, along with the incremental cash generated from financing transactions, enabled Financial Services to reduce intersegment debt by $531 million and debt to Fiat affiliates by $1.2 billion during the year.

Fourth Quarter and Full Year 2009 Net Income (Loss) Attributable to CNH

Fourth quarter 2009 Net Income Attributable to CNH was $28 million, compared to $114 million in the fourth quarter of 2008. Results include Restructuring, After Tax, of $19 million in the fourth quarter of 2009, compared with $3 million in the same period in the prior year. Net Income Attributable to CNH, Before Restructuring, After Tax, was $47 million, compared with $117 million in the prior year.

For the full year, the Net Loss Attributable to CNH was $(190) million, compared to net income of $825 million in 2008. The Net Loss includes a loss of $(46) million in Equipment Operations' unconsolidated subsidiaries, a decline of $86 million compared with a profit of $40 million in the prior year, reflecting primarily the results of the company's unconsolidated construction equipment joint ventures. Results include Restructuring, After Tax, of $75 million in 2009, compared with $28 million in 2008. The Net Loss Attributable to CNH, Before Restructuring, After Tax, was $(115) million, compared to net income of $853 million the prior year. For 2009, the Company incurred a $92 million consolidated tax expense, which includes $131 million of tax charges due to the geographic mix of earnings.

Equipment Operations Cash Flow and Net Debt (Cash)

Equipment Operations Cash
 Flow and Net Debt              Quarter Ended           Full Year Ended
                            ----------------------  ----------------------
(Unaudited, U.S. GAAP, US$
 in millions)               12/31/2009  12/31/2008  12/31/2009  12/31/2008
                            ----------  ----------  ----------  ----------

Net Income (loss)           $       21  $      102  $     (222) $      824
Depreciation & Amortization         75          64         270         258
Changes in Working Capital*        939        (209)      1,234      (1,310)
Other**                           (252)       (252)       (137)        (54)
                            ----------  ----------  ----------  ----------
Net Cash Provided (Used) by
 Operating Activities              783        (295)      1,145        (282)
Net Cash Provided (Used) by
 Investing Activities***           (89)       (265)       (240)       (520)
All Other, Including FX
 Impact for the Period              19          93          48        (107)
                            ----------  ----------  ----------  ----------
(Increase)/Decrease in Net
 Debt (Cash)                $      713  $     (467) $      953  $     (909)
                            ==========  ==========  ==========  ==========

Net Debt (Cash)             $     (530) $      423  $     (530) $      423
                            ==========  ==========  ==========  ==========

* Net change in receivables, inventories and payables including
inter-segment receivables and payables, net of FX impact for the period.
** Changes in Other items such as marketing programs and tax accruals.
*** Excluding Net (Deposits In) / Withdrawals from Fiat Cash Pools, as they
are a part of Net Debt (Cash).


CNH Equipment Operations ended the year with a net cash position of $530 million. This was a $953 million improvement and the main driver was the dramatic decrease in Working Capital. Accounts Receivables decreased by $794 million while Inventories were reduced $1,360 million over the course of the year. Accounts Payable decreased $920 million during the year, bringing the cash flow generated from working capital to $1,234 million. Net Cash Used by Investing Activities totaled ($240) million for the full year.

Net Debt for Equipment Operations was reduced in the fourth quarter by $713 million as the company generated $783 million in Cash from Operating Activities and spent $89 million in Net Cash Used by Investing Activities.

Financial Services' Net Debt decreased by $1.7 billion during the quarter to $6.4 billion at December 31, 2009. Compared with December 31, 2008, Financial Services' Net Debt decreased by $1.8 billion from $8.2 billion.

Consolidated Net Debt at year-end totaled $5.9 billion, down $2.4 billion from the end of the third quarter, and down $2.8 billion from year-end 2008. Consolidated Total Debt with Fiat affiliates less Deposits in Fiat affiliates cash management pools totaled $638 million at year-end, down from $2.4 billion at September 30, 2009 and down $2.5 billion from $3.2 billion at December 31, 2008.

Market Outlook

CNH outlook anticipates that global Agriculture Equipment markets will decline 5-10% in 2010. The CNH outlook for the global Construction Equipment markets is for an increase of approximately 5-10% in 2010.

2010 CNH Outlook

"In 2010 we will continue our focus on tight cash management and cost control. We expect to generate cash from improved operating results and our ongoing focus on working capital management," Boyanovsky said. "Given the lack of visibility of macro conditions, we will continue to exercise discipline in areas over which we have control."

CNH Global N.V. is a world leader in the agricultural and construction equipment businesses. Supported by 11,300 dealers in 170 countries, CNH brings together the knowledge and heritage of its Case and New Holland brand families with the strength and resources of its worldwide commercial, industrial, product support and finance organizations. CNH Global N.V., whose stock is listed at the New York Stock Exchange (NYSE: CNH), is a majority-owned subsidiary of Fiat S.p.A. (FIA.MI). More information about CNH and its Case and New Holland products can be found online at www.cnh.com.

CNH management will hold a conference call later today, to review its 2009 results. The conference call Webcast will begin at approximately 7:00 a.m. U.S. Central Time; 8:00 a.m. U.S. Eastern Time. This call can be accessed through the investor information section of the company's Web site at www.cnh.com and is being carried by CCBN.

Forward-looking statements. This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release, including statements regarding our competitive strengths, business strategy, future financial position, operating results, budgets, projected costs and plans and objectives of management, are forward-looking statements. These statements may include terminology such as "may," "will," "expect," "could," "should," "intend," "estimate," "anticipate," "believe," "outlook," "continue," "remain," "on track," "goal," or similar terminology.

Our outlook is predominantly based on our interpretation of what we consider key economic assumptions and involves risks and uncertainties that could cause actual results to differ. Crop production and commodity prices are strongly affected by weather and can fluctuate significantly. Housing starts and other construction activity are sensitive to the availability of credit and to interest rates and government spending. Some of the other significant factors which may affect our results include general economic and capital market conditions, the cyclical nature of our business, customer buying patterns and preferences, foreign currency exchange rate movements, our hedging practices, our customers' access to credit, restrictive covenants in our debt agreements, actions by rating agencies concerning the ratings of our debt securities and asset backed securities, risks related to our relationship with Fiat S.p.A., political uncertainty and civil unrest or war in various areas of the world, pricing, product initiatives and other actions by competitors, disruptions in production capacity, excess inventory levels, the effect of changes in laws and regulations (including those related to tax, healthcare, retiree benefits, government subsidies and international trade), the results of legal proceedings, technological difficulties, results of our research and development activities, changes in environmental laws, employee and labor relations, pension and health care costs, relations with and the financial strength of dealers and critical suppliers, the cost and availability of supplies from our suppliers, raw material costs and availability, energy prices, real estate values, animal diseases, crop pests, harvest yields, government farm programs and consumer confidence, housing starts and construction activity, concerns related to modified organisms and fuel and fertilizer costs. Additionally, our achievement of the anticipated benefits of our margin improvement initiatives depends upon, among other things, industry volumes as well as our ability to effectively rationalize our operations and to execute our brand strategy. Further information concerning factors that could significantly affect expected results is included in our annual report on Form 20-F for the year ended December 31, 2008.

We can give no assurance that the expectations reflected in our forward-looking statements will prove to be correct. Our actual results could differ materially from those anticipated in these forward-looking statements. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by the factors we disclose that could cause our actual results to differ materially from our expectations. We undertake no obligation to update or revise publicly any forward-looking statements.

                              CNH Global N.V.
                          Revenues and Net Sales
                                (Unaudited)



                           Three Months Ended          Year Ended
                              December 31,             December 31,
                         ----------------------   ----------------------
                                           %                         %
                           2009   2008  Change     2009      2008  Change
                         ------  ------  -----    -------  ------- ------
                             (in Millions)              (in Millions)
 Revenues:
   Net sales
     Agricultural
      equipment          $2,626  $2,967    (11%)  $10,663  $12,902    (17%)
     Construction
      equipment             587     695    (16%)    2,120    4,464    (53%)
                         ------  ------           -------  -------
       Total net sales    3,213   3,662    (12%)   12,783   17,366    (26%)

   Financial services       361     336       7%    1,190    1,356    (12%)
   Eliminations and
    other                   (64)    (57)             (213)    (246)
                         ------  ------           -------  -------

   Total revenues        $3,510  $3,941    (11%)  $13,760  $18,476    (26%)
                         ======  ======           =======  =======

 Net sales:
   North America         $1,154  $1,413    (18%)  $ 5,223  $ 5,975    (13%)
   Western Europe           894   1,130    (21%)    3,681    5,345    (31%)
   Latin America            630     456     38%     1,751    2,457    (29%)
   Rest of World            535     663    (19%)    2,128    3,589    (41%)
                         ------  ------           -------  -------

   Total net sales       $3,213  $3,662    (12%)  $12,783  $17,366    (26%)
                         ======  ======           =======  =======



                              CNH GLOBAL N.V.
                 CONDENSED CONSOLIDATED INCOME STATEMENTS
                       AND SUPPLEMENTAL INFORMATION
                                (Unaudited)


                                               EQUIPMENT      FINANCIAL
                             CONSOLIDATED     OPERATIONS       SERVICES
                             Three Months    Three Months    Three Months
                                Ended           Ended           Ended
                             December 31,    December 31,    December 31,
                            --------------  --------------  --------------
                             2009    2008    2009    2008    2009     2008
                            ------  ------  ------  ------  ------- -------
                                 (in Millions, except per share data)
Revenues
   Net sales                $3,213  $3,662  $3,213  $3,662  $     - $     -
   Finance and interest
    income                     297     279      34      58      361     336
                            ------  ------  ------  ------  ------- -------
 Total                       3,510   3,941   3,247   3,720      361     336
                            ------  ------  ------  ------  ------- -------

 Costs and Expenses
   Cost of goods sold        2,690   2,930   2,690   2,930        -       -
   Selling, general and
    administrative             399     416     310     334       89      82
   Research and development    112      99     112      99        -       -
   Restructuring                20       5      20       -        -       5
   Interest expense            162     180      84     100      118     130
   Interest compensation to
    Financial Services           -       -      59      80        -       -
   Other, net                   83     149      54      78       28      56
                            ------  ------  ------  ------  ------- -------
 Total                       3,466   3,779   3,329   3,621      235     273
                            ------  ------  ------  ------  ------- -------


 Income (loss) before
  income taxes and equity
  in income (loss)
  of unconsolidated
  subsidiaries and
  affiliates                    44     162     (82)     99      126      63
 Income tax provision
  (benefit)                     21      56     (12)     42       33      14
 Equity in income (loss) of
  unconsolidated
  subsidiaries and
  affiliates:
   Financial Services            3       2      96      51        3       2
   Equipment Operations         (5)     (6)     (5)     (6)       -       -
                            ------  ------  ------  ------  ------- -------
 Net income                     21     102      21     102       96      51
 Net income (loss)
  attributable to
  noncontrolling interests      (7)    (12)     (7)    (12)       -       -
                            ------  ------  ------  ------  ------- -------

 Net Income attributable to
  CNH Global N.V.           $   28  $  114  $   28  $  114  $    96 $    51
                            ======  ======  ======  ======  ======= =======


 Weighted average shares
  outstanding:
   Basic                     237.4   237.4
                            ======  ======
   Diluted                   237.7   237.4
                            ======  ======

 Basic and diluted earnings
  per share ("EPS")
  attributable to CNH
  Global N.V. common
  shareholders:
   Basic:
     EPS before
      restructuring, after
      tax                   $ 0.20  $ 0.49
                            ======  ======
     EPS                    $ 0.12  $ 0.48
                            ======  ======
   Diluted:
     EPS before
      restructuring, after
      tax                   $ 0.20  $ 0.49
                            ======  ======
     EPS                    $ 0.12  $ 0.48
                            ======  ======

   Dividends per share      $    -  $    -
                            ======  ======


 See Notes to Condensed Consolidated Financial Statements.


                              CNH GLOBAL N.V.
                 CONDENSED CONSOLIDATED INCOME STATEMENTS
                       AND SUPPLEMENTAL INFORMATION
                                (Unaudited)


                                          EQUIPMENT          FINANCIAL
                        CONSOLIDATED      OPERATIONS         SERVICES
                         Year Ended       Year Ended        Year Ended
                         December 31,    December 31,       December 31,
                      ----------------  ----------------  -----------------
                        2009    2008      2009    2008      2009     2008
                      -------  -------  -------  -------  -------- --------
                              (in Millions, except per share data)
Revenues
   Net sales          $12,783  $17,366  $12,783  $17,366  $      - $      -
   Finance and
    interest income       977    1,110      131      205     1,190    1,356
                      -------  -------  -------  -------  -------- --------
 Total                 13,760   18,476   12,914   17,571     1,190    1,356
                      -------  -------  -------  -------  -------- --------

 Costs and Expenses
   Cost of goods sold  10,862   14,054   10,862   14,054         -        -
   Selling, general
    and
    administrative      1,486    1,698    1,150    1,403       336      295
   Research and
    development           398      422      398      422         -        -
   Restructuring          102       39       98       34         4        5
   Interest expense       671      765      320      358       497      606
   Interest
    compensation to
    Financial
    Services                -        -      202      275         -        -
     Other, net           334      342      201      204       129      115
                      -------  -------  -------  -------  -------- --------
 Total                 13,853   17,320   13,231   16,750       966    1,021
                      -------  -------  -------  -------  -------- --------


 Income (loss) before
  income taxes and
  equity in income
  (loss) of
  unconsolidated
  subsidiaries and
  affiliates              (93)   1,156     (317)     821       224      335
 Income tax provision      92      385       33      279        59      106
 Equity in income
  (loss) of
  unconsolidated
  subsidiaries and
  affiliates:
   Financial Services       9       13      174      242         9       13
   Equipment
    Operations            (46)      40      (46)      40         -        -
                      -------  -------  -------  -------  -------- --------
 Net income (loss)       (222)     824     (222)     824       174      242
 Net income (loss)
  attributable to
  noncontrolling
  interests               (32)      (1)     (32)      (1)        -        -
                      -------  -------  -------  -------  -------- --------

 Net Income (loss)
  attributable to CNH
  Global N.V.         $  (190) $   825  $  (190) $   825  $    174 $    242
                      =======  =======  =======  =======  ======== ========


 Weighted average
  shares outstanding:
   Basic                237.4    237.3
                      =======  =======
   Diluted              237.4    237.5
                      =======  =======

 Basic and diluted
  earnings (loss) per
  share ("EPS")
  attributable to CNH
  Global N.V. common
  shareholders:
   Basic:
     EPS before
      restructuring,
      after tax       ($ 0.48) $  3.59
                      =======  =======
     EPS              ($ 0.80) $  3.48
                      =======  =======
   Diluted:
     EPS before
      restructuring,
      after tax       ($ 0.48) $  3.59
                      =======  =======
     EPS              ($ 0.80) $  3.47
                      =======  =======

   Dividends per
    share             $     -  $  0.50
                      =======  =======


 See Notes to Condensed Consolidated Financial Statements.




                              CNH GLOBAL N.V.
                   CONDENSED CONSOLIDATED BALANCE SHEET
                       AND SUPPLEMENTAL INFORMATION
                                (Unaudited)

                                           EQUIPMENT
                        CONSOLIDATED       OPERATIONS    FINANCIAL SERVICES
                      ----------------- ----------------- -----------------
                      December December December December December December
                         31,      31,      31,       31,      31,      31,
                        2009     2008     2009      2008     2009     2008
                      -------- -------- -------  -------- -------- --------
                                          (in Millions)
Assets
   Cash and cash
    equivalents       $  1,263 $    633 $   290  $    173 $    973 $    460
   Deposits in Fiat
    affiliates cash
    management pools     2,251    2,058   2,144     1,666      107      392
   Accounts, notes
    receivable and
    other - net          8,426   10,713     788     1,478    7,952    9,461
   Intersegment notes
    receivable               -        -   2,398     2,295      634        -
   Inventories           3,297    4,485   3,297     4,485        -        -
   Property, plant
    and equipment -
    net                  1,764    1,617   1,761     1,613        3        4
   Equipment on
    operating leases
    - net                  646      604       3         5      643      599
   Investment in
    Financial
    Services                 -        -   2,377     2,073        -        -
   Investments in
    unconsolidated
    affiliates             415      473     330       371       85      102
   Goodwill and other
    intangibles          3,091    3,105   2,935     2,950      156      155
   Other assets          2,055    1,771   1,557     1,320      498      451
                      -------- -------- -------  -------- -------- --------
 Total Assets         $ 23,208 $ 25,459 $17,880  $ 18,429 $ 11,051 $ 11,624
                      ======== ======== =======  ======== ======== ========


Liabilities and
 Equity
   Short-term debt    $  1,972 $  3,480 $   136  $    716 $  1,836 $  2,764
   Intersegment
    short-term debt          -        -     161         -    1,746    1,976
   Accounts payable      1,915    2,735   2,061     2,860      151       93
   Long-term debt,
    including current
    maturities           7,436    7,877   3,532     3,841    3,904    4,036
   Intersegment
    long-term debt           -        -     473         -      652      319
   Accrued and other
    liabilities          5,075    4,792   4,708     4,438      384      362
                      -------- -------- -------  -------- -------- --------
 Total Liabilities      16,398   18,884  11,071    11,855    8,673    9,550
   Equity                6,810    6,575   6,809     6,574    2,378    2,074
                      -------- -------- -------  -------- -------- --------
 Total Liabilities
  and Equity          $ 23,208 $ 25,459 $17,880  $ 18,429 $ 11,051 $ 11,624
                      ======== ======== =======  ======== ======== ========

 Total debt less cash
  and cash
  equivalents,
  deposits in Fiat
  affiliates cash
  management pools
  and intersegment
  notes receivables
  "Net Debt (Cash)"   $  5,894 $  8,666 $  (530) $    423 $  6,424 $  8,243
                      ======== ======== =======  ======== ======== ========



 See Notes to Condensed Consolidated Financial Statements.




                              CNH GLOBAL N.V.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                       AND SUPPLEMENTAL INFORMATION
                                (Unaudited)


                                              EQUIPMENT      FINANCIAL
                             CONSOLIDATED     OPERATIONS      SERVICES
                              Year Ended      Year Ended     Year Ended
                             December 31,     December 31,   December 31,
                            --------------  --------------  --------------
                             2009    2008    2009    2008     2009   2008
                            ------  ------  ------  ------  ------  ------
                                            (in Millions)
 Operating Activities:
   Net income (loss)        $ (222) $  824  $ (222) $  824  $  174  $  242
   Adjustments to reconcile
    net income to net
    cash from operating
    activities:
      Depreciation and
       amortization            398     374     270     258     128     116
      Intersegment
       activity                  -       -      39      69     (39)    (69)
      Changes in operating
       assets and
       liabilities           2,025    (525)  1,088  (1,131)    937     606
      Other, net                11     (23)    (30)   (302)     20      41
                            ------  ------  ------  ------  ------  ------
 Net cash provided (used)
  by operating activities    2,212     650   1,145    (282)  1,220     936
                            ------  ------  ------  ------  ------  ------

 Investing Activities:
   Expenditures for
    property, plant and
    equipment                 (218)   (493)   (217)   (492)     (1)     (1)
   Expenditures for
    equipment on operating
    leases                    (302)   (318)      -      (5)   (302)   (313)
   Net collections from
    (additions to) retail
    receivables and
    related
    securitizations          1,796  (2,106)      -       -   1,796  (2,106)
   Net withdrawals from
    (deposits in) Fiat
    affiliates cash
    management pools          (162)   (925)   (451)   (546)    289    (379)
   Other, net                  119      53     (23)    (23)    142      68
                            ------  ------  ------  ------  ------  ------
 Net cash provided (used)
  by investing activities    1,233  (3,789)   (691) (1,066)  1,924  (2,731)
                            ------  ------  ------  ------  ------  ------

 Financing Activities:
   Intersegment activity         -       -     676    (625)   (676)    625
   Net increase (decrease)
    in indebtedness         (2,954)  2,957  (1,017)  1,867  (1,937)  1,090
   Dividends paid                -    (118)      -    (118)   (153)     (4)
   Other, net                  (15)      4     (15)      4       -       8
                            ------  ------  ------  ------  ------  ------
 Net cash provided (used)
  by financing activities   (2,969)  2,843    (356)  1,128  (2,766)  1,719
                            ------  ------  ------  ------  ------  ------

 Effect of foreign exchange
  rate changes on cash and
  cash equivalents             154     (96)     19     (12)    135     (84)
                            ------  ------  ------  ------  ------  ------

Increase (decrease) in cash
 and cash equivalents          630    (392)    117    (232)    513    (160)
Cash and cash equivalents,
 beginning of period           633   1,025     173     405     460     620
                            ------  ------  ------  ------  ------  ------
Cash and cash equivalents,
 end of period              $1,263  $  633  $  290  $  173  $  973  $  460
                            ======  ======  ======  ======  ======  ======


 See Notes to Condensed Consolidated Financial Statements.

1. Principles of Consolidation and Basis of Presentation -- The accompanying unaudited condensed consolidated financial statements and supplemental information reflect all adjustments, consisting only of normal, recurring adjustments except where noted, that are, in the opinion of management, necessary for a fair presentation of the consolidated results of CNH Global N.V., a Netherlands corporation, and its consolidated subsidiaries ("CNH" or the "Company") in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"); however, because of their condensed nature, they do not include all of the information and note disclosures required by U.S. GAAP or the rules of the Securities and Exchange Commission ("SEC") for complete annual or interim period financial statements. These financial statements should be read in conjunction with the audited, consolidated financial statements and notes thereto for the year ended December 31, 2008 included in the Company's Annual Report on Form 20-F filed with the SEC on March 3, 2009. CNH is controlled by Fiat Netherlands Holding N.V., a wholly owned subsidiary of Fiat S.p.A. ("Fiat"). As of December 31, 2009, Fiat owned approximately 89% of CNH's outstanding common shares.

The condensed consolidated financial statements include the accounts of CNH's majority-owned and controlled subsidiaries and reflect the noncontrolling interests of the minority owners of the subsidiaries that are not fully owned for the periods presented, as applicable. The operations and key financial measures and financial analyses differ significantly for manufacturing and distribution businesses and financial services businesses; therefore, management believes that certain supplemental disclosures are important in understanding the consolidated operations and financial results of CNH. The supplemental financial information captioned "Equipment Operations" includes the results of operations of CNH's agricultural and construction equipment operations, with the Company's financial services businesses reflected on the equity method of accounting. The supplemental financial information captioned "Financial Services" reflects the combination of CNH's financial services operations.

2. Recent Accounting Developments -- As of the beginning of 2009, CNH adopted new accounting guidance on fair value measurements, business combinations and noncontrolling interests. In April 2009, CNH adopted new accounting guidance related to other-than-temporary impairments.

In September 2006, the Financial Accounting Standards Board ("FASB") issued new accounting guidance related to fair value measurements. The new guidance defines fair value, establishes a framework for the measurement of fair value, and enhances disclosures about fair value measurements. The guidance does not require any new fair value measures but rather eliminates inconsistencies in previous guidance. The guidance was effective for fiscal years beginning after November 15, 2007. However, in February 2008, the effective date of the guidance was delayed to fiscal years beginning after November 15, 2008, and interim periods within those fiscal years for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). On January 1, 2008, CNH adopted the guidance except as it applied to those nonfinancial assets and nonfinancial liabilities. The adoption of the remaining guidance for all remaining nonfinancial assets and nonfinancial liabilities on January 1, 2009, did not have a material impact to CNH's financial position and results of operations.

In December 2007, the FASB issued new accounting guidance on business combinations which establishes principles and requirements for how an acquirer in a business combination has to recognize and measure in its financial statements the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in the acquiree and the goodwill acquired. The guidance also establishes disclosure requirements to enable the evaluation of the nature and financial effects of the business combination. The new guidance is effective for business combinations occurring in fiscal years beginning after December 15, 2008. The adoption of this guidance on January 1, 2009, did not have a material impact on CNH's financial position and results of operations.

In December 2007, the FASB issued new accounting guidance on noncontrolling interests which establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the noncontrolling interest, changes in a parent's ownership interest, and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. The guidance also establishes disclosure requirements that clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. The guidance was effective for fiscal years beginning after December 15, 2008 and the accounting requirements were applied prospectively to all noncontrolling interests, including those that arose before the effective date. The presentation and disclosure requirements were applied retrospectively for all periods presented, as required by the guidance.

In April 2009, the FASB issued new accounting guidance which amends the other-than-temporary impairment model for debt securities. Under this guidance, an other-than-temporary-impairment must be recognized if an investor has the intent to sell the debt security or if it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. In addition, the guidance changes the amount of impairment to be recognized in current-period earnings when an investor does not have the intent to sell or will not be required to sell the debt security, as in these cases only the amount of the impairment associated with credit losses is recognized in income. The guidance is effective for interim and annual reporting periods ending after June 15, 2009. The adoption of the guidance as of April 1, 2009 did not have a material impact on CNH's financial position and results of operations.

In June 2009, the FASB issued new accounting guidance which changes the accounting for transfers of financial assets. The guidance eliminates the concept of a "qualifying special-purpose entity," changes the requirements for derecognizing financial assets, and requires additional disclosures in order to enhance information reported to users of financial statements by providing greater transparency about transfers of financial assets, including securitization transactions, and an entity's continuing involvement in and exposure to the risks related to transferred financial assets. The guidance is effective for transactions entered into starting on January 1, 2010. We expect that the impact will be that certain transactions that have historically met the derecognition criteria will no longer qualify for derecognition.

In June 2009, the FASB also issued new accounting guidance which amends the accounting for variable interest entities. The guidance significantly changes the criteria for determining whether the consolidation of a variable interest entity is required. The guidance also addresses the effect of changes required by the new accounting guidance which changes the accounting for transfers of financial assets, increases the frequency for reassessing consolidation of variable interest entities and creates new disclosure requirements about an entity's involvement in a variable interest entity. The guidance is effective for interim and annual reporting periods that begin after November 15, 2009. We will adopt the guidance in 2010. We expect that it will be necessary to consolidate a significant portion, if not all, of our off-book receivables and related liabilities upon adoption of this guidance. The impact is expected to increase assets and liabilities approximately $6.0 billion and decrease equity by approximately $50 million.

3. Stock-Based Compensation Plans -- Stock-based compensation consists of stock options and performance-based shares that have been granted under the CNH Equity Incentive Plan ("CNH EIP") and the CNH Outside Directors' Compensation Plan. For the years ended December 31, 2009 and 2008, pre-tax stock-based compensation costs were $14 million and $300 thousand, respectively. For the three months ended December 31, 2009, pre-tax stock-based compensation costs were $6 million. For the three months ended December 31, 2008, CNH recognized pre-tax income of approximately $21 million.

In April 2009, CNH granted approximately 4.1 million performance-based stock options (at targeted performance levels) under the CNH EIP. As specified fiscal 2009 targets were achieved, one-third of the options vested when 2009 results were approved by the Board of Directors in January 2010 (the "Determination Date"). The remaining options will vest equally on the first and second anniversary of the Determination Date. Excluding the impact of forfeitures, CNH expects the actual number of options that will vest to be approximately 2.2 million based on CNH's 2009 actual results. This grant has a contractual life of five years from the Determination date. The grant date fair value of $9.03 was determined using the Black-Scholes pricing model. CNH expects to recognized expense over the vesting period of approximately $17 million.

The assumptions used in the Black-Scholes model were:

Risk-free interest rate       1.61%
Expected volatility          70.63%
Expected life            3.73 years
Dividend yield                0.70%

The risk-free interest rate is based on the current U.S. Treasury rate for a bond of approximately the expected life of the options. The expected volatility is based on the historical activity of CNH's common shares over a period equal to the expected life of the options. The expected life is based on the average of the vesting period of each vesting tranche and the original contract term of 69 months. The expected dividend yield is based on the annual dividends which have been paid on CNH's common shares over the past several years.

4. Accounts and Notes Receivable -- In CNH's receivables securitization programs, certain retail, wholesale finance and credit card receivables are sold and not included in the Company's consolidated balance sheets. The following table summarizes the principal amount of our receivables that are not included in the consolidated balance sheet as of December 31, 2009 and 2008:


                                   December 31, 2009    December 31, 2008
                                   -----------------    -----------------
                                               (in millions)
Wholesale receivables              $           2,316    $           2,328
Retail and other notes and
 finance leases                                4,207                3,044
Credit card receivables                          181                  186
                                   -----------------    -----------------
  Total                            $           6,704    $           5,558
                                   =================    =================

For the year ending December 31, 2009, utilizing both the public asset securitization and private bank markets, Financial Services closed on $4.0 billion of new retail transactions in North America for a gain of $68 million. In addition, the U.S. wholesale securitization facility closed a TALF eligible $583 million term securitization and a 364-day, $250 million conduit facility, bringing the total U.S. facility size to $1.6 billion at December 31, 2009.

Europe continues to expand its factoring programs in certain European jurisdictions. The amount of outstanding wholesale receivables under these factoring programs was EUR 666 million ($959 million) of which EUR 483 million ($696 million) were sold and, accordingly, removed from the balance sheet.

While the Canadian wholesale securitization facility closed a C$325 million ($309 million) securitization in the fourth quarter, the facility does not qualify for off-book treatment and consequently, is now considered a secured borrowing. In prior years, this facility did qualify as off-book.

Financial Services' pretax income for the three months ended December 31, 2009 includes additional income of $11 million on securitization transactions that occurred in prior quarters.

5. Inventories -- Inventories as of December 31, 2009 and 2008 consist of the following:

                                December    December
                                31, 2009    31, 2008
                               ----------- -----------
                                   (in millions)
Raw materials                  $       660 $       995
Work-in-process                        189         323
Finished goods and parts             2,448       3,167
                               ----------- -----------
Total Inventories              $     3,297 $     4,485
                               =========== ===========

6. Goodwill and Other Intangibles -- The following table sets forth changes in goodwill and other intangibles for the year ended December 31, 2009:

                                                    Foreign
                        Balance at                  Currency   Balance at
                        December 31,              Translation December 31,
                            2008     Amortization   and Other     2009
                        ------------ ------------  ----------- -----------
                                           (in millions)
Goodwill                $      2,347 $          -  $        27 $     2,374
Other Intangibles                758          (63)          22          717
                        ------------ ------------  ----------- ------------
  Total Goodwill
   and Other
   Intangibles          $      3,105 $        (63) $        49 $      3,091
                        ============ ============  =========== ============

The construction equipment reporting units experienced operating losses and other business factors that are different than anticipated at year end 2008. As a result, the Company determined that it needed to evaluate whether or not impairment of goodwill existed at June 30 and September 30, 2009. These evaluations indicated that no goodwill impairment existed on the construction equipment businesses at either date.

The Company performed its annual impairment review of all reporting units during the fourth quarter and concluded there was no impairment as of December 31, 2009.

As of December 31, 2009 and 2008, the Company's other intangible assets and related accumulated amortization consisted of the following:

                              December 31, 2009       December 31, 2008
                            ----------------------- ---------------------
                  Weighted         Accumulated             Accumulated
                  Average            Amorti-                 Amorti-
                   Life      Gross   zation   Net   Gross    zation   Net
                            ------- ------- ------- ------- ------- -----
                                            (in millions)
Other intangible
 assets subject to
 amortization:
  Engineering
   drawings              20 $   381 $   215 $   166 $   379 $   197 $   182
  Dealer network         25     216      87     129     216      78     138
  Software                5     386     267     119     371     238     133
  Other               10-30      66      35      31      60      27      33
                            ------- ------- ------- ------- ------- -------
                              1,049     604     445   1,026     540     486
Other intangible
 assets not subject
 to amortization:
  Trademarks                    272       -     272     272       -     272
                            ------- ------- ------- ------- ------- -------
Total other
 intangibles                $ 1,321 $   604 $   717 $ 1,298 $   540 $   758
                            ======= ======= ======= ======= ======= =======

CNH recorded amortization expense related to other intangible assets of approximately $63 million and $65 million for the years ended December 31, 2009 and 2008, respectively.

7. Debt -- The following table sets forth total debt and "Net Debt (Cash)" (total debt less cash and cash equivalents, deposits in Fiat affiliates cash management pools and intersegment notes receivable) as of December 31, 2009 and 2008:

                                           Equipment          Financial
                        Consolidated       Operations         Services
                      ----------------- ----------------- -----------------
                      December December December December December December
                        31,      31,      31,       31,      31,      31,
                       2009     2008     2009      2008     2009     2008
                      -------- -------- -------  -------- -------- --------
                                          (in millions)
Short-term debt:
  With Fiat
   Affiliates         $    537 $  2,240 $     7  $    356 $    530 $  1,884
  Other                  1,435    1,240     129       360    1,306      880
  Intersegment               -        -     161         -    1,746    1,976
                      -------- -------- -------  -------- -------- --------
Total short-term debt    1,972    3,480     297       716    3,582    4,740
                      -------- -------- -------  -------- -------- --------
Long-term debt:
  With Fiat
   affiliates            2,352    2,984     931     1,766    1,421    1,218
  Other                  5,084    4,893   2,601     2,075    2,483    2,818
  Intersegment               -        -     473         -      652      319
                      -------- -------- -------  -------- -------- --------
Total long-term debt     7,436    7,877   4.005     3,841    4,556    4,355
                      -------- -------- -------  -------- -------- --------
Total debt:
  With Fiat
   affiliates            2,889    5,224     938     2,122    1,951    3,102
  Other                  6,519    6,133   2,730     2,435    3,789    3,698
  Intersegment               -        -     634         -    2,398    2,295
                      -------- -------- -------  -------- -------- --------
Total debt               9,408   11,357   4,302     4,557    8,138    9,095
                      -------- -------- -------  -------- -------- --------
Less:
  Cash and cash
   equivalents           1,263      633     290       173      973      460
  Deposits in Fiat
   affiliates cash
   management pools      2,251    2,058   2,144     1,666      107      392
  Intersegment notes
   receivable                -        -   2,398     2,295      634        -
                      -------- -------- -------  -------- -------- --------
Net debt (cash)       $  5,894 $  8,666 $  (530) $    423 $  6,424 $  8,243
                      ======== ======== =======  ======== ======== ========

At December 31, 2009, CNH had approximately $4.4 billion available under $9.2 billion total lines of credit and asset-backed facilities.

Consolidated long term debt includes current maturities of long term debt of $2.4 billion.

On June 1, 2009 the 6% Senior Notes in the aggregate principal amount of $500 million came to maturity and were fully paid back out of CNH's own liquidity.

On August 17, 2009, Case New Holland, Inc. completed a private offering of $1.0 billion of 7.75% senior notes (the "7.75% Senior Notes"). The 7.75% Senior Notes are due in 2013 and are guaranteed by CNH and certain of its direct and indirect subsidiaries. The net proceeds of this offering were approximately $955 million. The proceeds from this offering are being used primarily for repayment of debt, including repayment of debt owed to Fiat, and general corporate purposes.

CNH participates in Fiat affiliates cash management pools with other Fiat affiliates. Amounts deposited with Fiat affiliates as part of the Fiat cash management system are repayable to CNH upon one business day's notice. To the extent that Fiat affiliates are unable to return any such amounts upon one business day's notice and in the event of a bankruptcy or insolvency of Fiat, CNH may be unable to secure the return of such funds, and CNH may be viewed as a creditor of such Fiat entity with respect to such funds. There is no assurance that the future operations of the Fiat cash management system may not adversely impact CNH's ability to recover its funds to the extent one or more of the above described events were to occur.

8. Income Taxes -- For the years ended December 31, 2009 and 2008, consolidated effective income tax rates were (98.9%) and 33.3%, respectively. For 2009, the tax rate differs from the Netherlands statutory rate of 25.5% due primarily to the impact of tax losses in certain jurisdictions where no immediate tax benefit is recognized, recording valuation allowances against previously recognized deferred tax assets, provisioning of tax contingencies, and enacted changes in tax rates. For 2008, tax rates differ from the Netherlands statutory rate of 25.5% due primarily to higher tax rates in certain jurisdictions, tax credits and incentives, provisioning of tax contingencies, utilization of tax losses in certain jurisdictions where no tax benefit was previously recognized, impact of tax losses in certain jurisdictions where no immediate tax benefit is recognized, and enacted changes in tax rates.

Management makes estimates and assumptions that affect the reported amounts of deferred tax assets. The Company has recorded valuation allowances to reduce its deferred tax assets to the amount it believes more likely than not to be realized. A change in judgment as to the realizability of the Company's deferred tax assets may significantly impact CNH's results of operations and financial position in the period that such a determination is made.

The Company is engaged in competent authority income tax proceedings at December 31, 2009. The Company anticipates reaching a settlement with competent authority within the next twelve months that may result in a tax deficiency assessment for which there should be correlative relief under competent authority. The potential tax deficiency assessment could have a net effect on cash flows in the range of $55 million to $60 million. The Company has provided for the tax contingencies and related competent authority recovery. The Company does not believe that the resolution of the competent authority proceedings will have a material adverse effect on the results of operations.

9. Restructuring -- During the three months and years ended December 31, 2009 and 2008, expense and utilization related to restructuring were as follows:

                        Three Months Ended
                           December 31,           Year Ended December 31,
                    --------------------------  --------------------------
                         2009        2008           2009         2008
                    ------------  ------------  ------------  ------------

                                         (in Millions)
Balance, beginning
 of period          $         47  $         17  $         14 $          10
Expense                       20             5           102            39
Utilization                  (22)          (10)          (73)          (35)
Foreign currency
 translation and
 other                         -             2             2             -
                    ------------  ------------  ------------  ------------
Balance, end of
 period             $         45  $         14  $         45  $         14
                    ============  ============  ============  ============

In April 2009, CNH announced a global consolidation and reorganization plan to further adjust cost and operating levels in light of the economic downturn. These actions include optimizing its manufacturing footprint and reducing salaried headcount. In June 2009, CNH announced it had started the process for the closing of its construction equipment plant located in Imola, Italy and to relocate that production to other CNH facilities. In July 2009, CNH announced it had reorganized its Construction Equipment business's management structure. Restructuring expense for the three months and year ended December 31, 2009 primarily consists of employee-related costs incurred due to headcount reduction actions being implemented under these plans. Utilization primarily represents payments of voluntary and involuntary employee severance costs, benefit plan curtailments and costs related to closing of facilities. CNH anticipates that the total cost of the actions that were initiated in the second and third quarters will be approximately $121 million before tax. Approximately $97 million, before tax, was recognized in 2009 relating to these actions. The balance is expected to be recognized in 2010.

10. Commitments and Contingencies -- CNH pays for warranty costs and the cost of major programs to modify products in the customers' possession within certain pre-established time periods. A summary of recorded activity as of and for the year ended December 31, 2009 for this commitment is as follows:

                                     Amount
                                 (in millions)

Balance at January 1, 2009        $       294
Current year provision                    328
Claims paid and other adjustments        (342)
Currency translation adjustment            21
                                  -----------
Balance at December 31, 2009      $       301
                                  ===========

In connection with a logistics Services Agreement among CNH Global N.V. ("CNH Global"), PGN Logistics Ltd. ("PGN") and certain affiliated companies, PGN entered into a subcontract with Transport Cheron N.V. ("Cheron"). The subcontract was signed by Cheron, and PGN purported to sign the contract "in the name and on behalf of" CNH Global. CNH Global contends that it is not a party to the subcontract and that PGN was not authorized to sign the subcontract on its behalf. In early 2005, and as a result of the termination of the Services Agreement, Cheron filed suit in the District Court in Haarlem, the Netherlands against both PGN and CNH Global for breach of the subcontract and for preliminary relief. In March 2005 the District Court issued an order requiring CNH Global to pay EUR 1,500,000 to Cheron as a preliminary payment of lost profit damages. CNH Global appealed this decision to the Court of Appeals in Amsterdam, and, on November 24, 2005, the Court of Appeals rendered its decision in effect holding that liability had not been demonstrated with a degree of certainty sufficient to warrant a preliminary award of damages. At this point the matter returned to the District Court for a determination of liability.

On September 24, 2008, the District Court issued its interim award with respect to liability. The District Court held that CNH Global is liable under the subcontract for damages that Cheron suffered as a result of the alleged breach of the subcontract. Cheron has alleged damages in the amount of approximately EUR 21 million. CNH Global believes that the damages alleged by Cheron are improperly calculated and, as a result, are materially overstated. Moreover, CNH Global believes the District Court interim award with respect to liability is incorrect. The damages phase of the case is currently ongoing with Cheron having filed its Statement for the Record Commenting on the Damage and Change of Claim on September 30, 2009 and CNH Global having filed its Statement of Defence Commenting on the Damage on January 6, 2010. CNH Global anticipates that the damages phase of the case will be completed sometime during 2010. In addition, CNH Global plans to appeal the liability decision to the Court of Appeals in Amsterdam once a final award with respect to damages has been issued.

11. Employee Benefit Plans -- During the third quarter of 2009, CNH made a discretionary contribution to its U.S. defined benefit pension plan trust of approximately $90 million.

12. Shareholders' Equity -- As of December 31, 2009, CNH had 237.4 million common shares outstanding.

13. Earnings (Loss) per Share -- The following table reconciles the numerator and denominator of the basic and diluted earnings (loss) per share computations for the three months and years ended December 31, 2009 and 2008:

                                 Three Months Ended       Year Ended
                                    December 31,         December 31,
                                --------------------- ---------------------
                                   2009       2008       2009       2008
                                ---------- ---------- ---------  ----------
                                   (in Millions, except per share data)
Basic earnings (loss) per share
 attributable to CNH Global
 N.V. common shareholders:
Net income (loss) attributable
 to CNH                         $       28 $      114 $    (190) $      825
                                ========== ========== =========  ==========
  Weighted average common
   shares outstanding - basic        237.4      237.4     237.4       237.3
                                ========== ========== =========  ==========
  Basic earnings (loss) per
   share  attributable to CNH
   common shareholders          $     0.12 $     0.48 $   (0.80) $     3.48
                                ========== ========== =========  ==========
Diluted earnings (loss) per
 share attributable to CNH
 Global N.V. common
 shareholders:
Net income (loss) attributable
 to CNH                         $       28 $      114 $    (190) $      825
                                ========== ========== =========  ==========
  Weighted average common
   shares outstanding - basic        237.4      237.4     237.4       237.3
  Effect of dilutive securities
   (when dilutive):
    Stock compensation plans           0.3          -         -         0.2
                                ---------- ---------- ---------  ----------
  Weighted average common
   shares outstanding -
   dilutive                          237.7      237.4     237.4       237.5
                                ========== ========== =========  ==========
  Diluted earnings (loss) per
   share attributable to CNH
   common shareholders          $     0.12 $     0.48 $   (0.80) $     3.47
                                ========== ========== =========  ==========

14. Comprehensive Income (Loss) -- The components of comprehensive income (loss) for the three months and years ended December 31, 2009 and 2008 are as follows:


                                         Three Months Ended   Year Ended
                                            December 31,      December 31,
                                          ----------------  --------------
                                           2009     2008     2009    2008
                                          -------  -------  ------  ------
                                                    (in Millions)
Net income (loss)                         $    21  $   102  $ (222) $  824
Other comprehensive income (loss),
 net of tax
  Cumulative translation adjustment            25     (249)    419    (403)
  Deferred gains (losses) on derivative
   financial instruments                      (26)      (3)     21     (35)
  Unrealized gains (losses) on retained
   interests in securitization
   transactions                                 8        1      20      (2)
  Pension liability adjustment               (100)    (146)    (21)   (119)
                                          -------  -------  ------  ------
Comprehensive income (loss)                   (72)    (295)    217     265
                                          -------  -------  ------  ------
  Less: Comprehensive income (loss)
   attributable to noncontrolling
   interests                                   (7)     (13)    (31)     (1)
                                          -------  -------  ------  ------
Comprehensive net income (loss)
 attributable to CNH                      $   (65) $  (282) $  248  $  266
                                          =======  =======  ======  ======

15. Segment Information - CNH has three reportable operating segments: Agricultural Equipment, Construction Equipment and Financial Services.

A reconciliation from consolidated trading profit reported to Fiat under International Financial Reporting Standards and International Accounting Standards (collectively "IFRS") to income (loss) before income taxes and equity in income (loss) of unconsolidated subsidiaries and affiliates under U.S. GAAP for the three months and years ended December 31, 2009 and 2008 is as follows:


                                       Three Months Ended   Year Ended
                                          December 31,      December 31,
                                        ----------------  ----------------
                                          2009    2008      2009    2008
                                        -------  -------  -------  -------
                                                  (in Millions)
Trading profit reported to Fiat under
 IFRS                                   $   144  $   310  $   470  $ 1,650
Adjustments to convert from trading
 profit under IFRS to U.S. GAAP income
 (loss) before income taxes and equity
 in income (loss) of unconsolidated
 subsidiaries and affiliates:
  Accounting for employee benefit plans     (21)      (5)     (51)     (43)
  Accounting for intangible assets,
   primarily product development costs      (42)     (15)    (140)     (68)
  Restructuring                             (20)      (5)    (102)     (39)
  Net financial expense                     (77)     (99)    (287)    (289)
  Accounting for receivable
   securitizations and other                 60      (24)      17      (55)
                                        -------  -------  -------  -------
Income (loss) before income taxes and
 equity in income (loss) of
 unconsolidated subsidiaries and
 affiliates under U.S. GAAP             $    44  $   162  $   (93) $ 1,156
                                        =======  =======  =======  =======

The following summarizes trading profit under IFRS by segment:

                                    Three Months Ended      Year Ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  ---------
                                                (in Millions)
Agricultural Equipment              $    152  $    308  $    650  $   1,234
Construction Equipment                   (65)      (73)     (393)        26
Financial Services                        57        75       213        390
                                    --------  --------  --------  ---------
  Trading profit under IFRS         $    144  $    310  $    470  $   1,650
                                    ========  ========  ========  =========

16. Reconciliation of Non-GAAP Financial Measures -- CNH, in its quarterly unaudited condensed financial statements, utilizes various figures that are "Non-GAAP Financial Measures" as this term is defined under Regulation G as promulgated by the SEC. In accordance with Regulation G, CNH has detailed either the computation of these measures from multiple U.S. GAAP figures or reconciled these non-GAAP financial measures to the most relevant U.S. GAAP equivalent. Some of these measures do not have standardized meanings and investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. CNH's management believes these non-GAAP measures provide useful supplementary information to investors in order that they may evaluate CNH's financial performance using the same measures used by our management. These non-GAAP financial measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with U.S. GAAP. An explanation and reconciliation of the measures to U.S. GAAP follows.

Net Income (Loss) Before Restructuring, After Tax and Earnings (Loss) Per Share Before Restructuring, After Tax

CNH defines net income (loss) before restructuring, after tax, as U.S. GAAP net income (loss) attributable to CNH, less U.S. GAAP restructuring charges, after tax applicable to the restructuring charges.

The following table reconciles net income (loss) attributable to CNH to net income before restructuring, after tax and the related pro-forma computation of earnings (loss) per share:

                                       Three Months Ended   Year Ended
                                          December 31,      December 31,
                                        ----------------  ----------------
                                         2009     2008     2009     2008
                                        -------  -------  -------  -------
                                          (in Millions, except per share
                                                      data)
Basic earnings (loss) per share
 attributable to CNH Global N.V. common
 shareholders:
  Net income (loss) attributable to CNH $    28  $   114  $  (190) $   825
                                        -------  -------  -------  -------
  Restructuring, after tax:
   Restructuring                             20        5      102       39
     Tax benefit                             (1)      (2)     (27)     (11)
                                        -------  -------  -------  -------
      Restructuring, after tax               19        3       75       28
                                        -------  -------  -------  -------
  Net income (loss) before
   restructuring, after tax             $    47  $   117  $  (115) $   853
                                        =======  =======  =======  =======
  Weighted average common shares
   outstanding - basic                    237.4    237.4    237.4    237.3
                                        =======  =======  =======  =======
  Basic earnings (loss) per share
   before restructuring, after tax      $  0.20  $  0.49  $ (0.48) $  3.59
                                        =======  =======  =======  =======
Diluted earnings (loss) per share
 attributable to CNH Global N.V. common
 shareholders:
  Net income (loss) before
   restructuring, after tax             $    47  $   117  $  (115) $   853
                                        =======  =======  =======  =======
  Weighted average common shares
   outstanding - basic                    237.4    237.4    237.4    237.3
  Effect of dilutive securities (when
   dilutive):
  Stock compensation plans                  0.3        -        -      0.2
                                        -------  -------  -------  -------
  Weighted average common shares
   outstanding - dilutive                 237.7    237.4    237.4    237.5
                                        =======  =======  =======  =======
  Diluted earnings (loss) per share
   before restructuring, after tax      $  0.20  $  0.49  $ (0.48) $  3.59
                                        =======  =======  =======  =======

Equipment Operations Gross and Operating Profit

CNH defines Equipment Operations gross profit as net sales of equipment less costs classified as cost of goods sold. CNH defines Equipment Operations operating profit as gross profit less costs classified as selling, general and administrative and research and development costs. The following table summarizes the computation of Equipment Operations gross and operating profit.

CNH defines Equipment Operations gross margin as gross profit as a percent of net sales of equipment. CNH defines Equipment Operations operating margin as operating profit as a percent of net sales of equipment.


            Three Months Ended December 31,    Year Ended December 31,
                 2009           2008            2009             2008
             -------------- -------------- --------------- ----------------
                                     (in Millions)

Net sales    $ 3,213 100.0% $ 3,662 100.0% $ 12,783 100.0% $ 17,366  100.0%
Less:
 Cost of
  goods sold   2,690  83.7%   2,930  80.0%   10,862  85.0%   14,054   80.9%
             -------        -------        --------        --------
Equipment
 Operations
 gross
 profit          523  16.3%     732  20.0%    1,921  15.0%    3,312   19.1%
Less:
 Selling,
  general and
  administra-
  tive           310   9.6%     334   9.1%    1,150   9.0%    1,403    8.1%
 Research and
  development    112   3.5%      99   2.7%      398   3.1%      422    2.4%
             -------        -------        --------        --------
Equipment
 Operations
 operating
 profit      $   101   3.1% $   299   8.2% $    373   2.9% $  1,487    8.6%
             =======        =======        ========        ========

Net Debt (Cash)

Net Debt (Cash) is defined as total debt less cash and cash equivalents, deposits in Fiat affiliates cash management pools and intersegment notes receivable. The calculation of Net Debt (Cash) is shown below:

                                Equipment Operations   Financial Services
                                --------------------  ---------------------
                                December   December   December   December
                                31, 2009   31, 2008   31, 2009   31, 2008
                                ---------  ---------- ---------- ----------
                                              (in Millions)

Total Debt                      $   4,302  $    4,557 $    8,138 $    9,095
Less:
 Cash and cash equivalents            290         173        973        460
 Deposits in Fiat affiliates
  cash management pools             2,144       1,666        107        392
 Intersegment notes receivables     2,398       2,295        634          -
                                ---------  ---------- ---------- ----------
Net Debt (Cash)                 $    (530) $      423 $    6,424 $    8,243
                                =========  ========== ========== ==========

Working Capital

Equipment Operations working capital is defined as accounts and notes receivable and other-net, excluding intersegment notes receivable, plus inventories less accounts payable. The U.S. dollar computation of cash generated from working capital, as defined, is impacted by the effect of foreign currency translation and other non-cash transactions.

The following table presents calculation of Cash Flow Generated from Working Capital for Equipment Operations for the fourth quarter 2009:

                                                                  Cash
                   Balance as  Effect of             Balance    Generated
                       of       Foreign               as of       from
                   September   Currency   Non-Cash   December    Working
                    30, 2009 Translation Transactions 31, 2009   Capital
                   ----------  ---------  ---------  ---------  ----------
Accounts, notes
 receivable and
 other - net -
 Third Party       $      843  $      49  $     (11) $     708  $      173
Accounts, notes
 receivable and
 other - net -
 Intersegment              75          3          -         80          (2)
                   ----------  ---------  ---------  ---------  ----------
Accounts, notes
 receivable and
 other - net -
 Total                    918         52        (11)       788         171
                   ----------  ---------  ---------  ---------  ----------
Inventories             3,762        (33)         -      3,297         432
                   ----------  ---------  ---------  ---------  ----------
Accounts payable -
 Third party           (1,565)       (23)         -     (1,835)        247
Accounts payable -
 Intersegment            (136)        (1)         -       (226)         89
                   ----------  ---------  ---------  ---------  ----------
Accounts payable -
 Total                 (1,701)       (24)         -     (2,061)        336
                   ----------  ---------  ---------  ---------  ----------
Working Capital    $    2,979  $      (5) $     (11) $   2,024  $      939
                   ==========  =========  =========  =========  ==========

The following table presents calculation of Cash Flow Generated from Working Capital for Equipment Operations for the full year 2009:

                                                                  Cash
                   Balance   Effect of                Balance   Generated
                    as of     Foreign                  as of       from
                  December   Currency     Non-Cash    December   Working
                  31, 2008  Translation Transactions  31, 2009   Capital
                  ---------  ----------  ----------  ---------  ----------
Accounts, notes
 receivable and
 other - net -
 Third Party      $   1,424  $      105  $      (12) $     708  $      809
Accounts, notes
 receivable and
 other - net -
 Intersegment            54          13          (2)        80         (15)
                  ---------  ----------  ----------  ---------  ----------
Accounts, notes
 receivable and
 other - net -
 Total                1,478         118         (14)       788         794
                  ---------  ----------  ----------  ---------  ----------
Inventories           4,485         209         (37)     3,297       1,360
                  ---------  ----------  ----------  ---------  ----------
Accounts payable
 - Third party       (2,691)       (113)          -     (1,835)       (969)
Accounts payable
 - Intersegment        (169)         (8)          -       (226)         49
                  ---------  ----------  ----------  ---------  ----------
Accounts payable
 - Total             (2,860)       (121)          -     (2,061)       (920)
                  ---------  ----------  ----------  ---------  ----------
Working Capital   $   3,103  $      206  $      (51) $   2,024  $    1,234
                  =========  ==========  ==========  =========  ==========

Equipment Operations Change in Net Sales on a Constant Currency Basis

CNH defines the change in net sales on a constant currency basis as the difference between prior year actual net sales and current year net sales translated at prior year average exchange rates. Elimination of the currency translation effect provides constant comparisons without the distortion of currency rate fluctuations.

The following table presents the change in Equipment Operations fourth quarter 2009 net sales as reported and on a constant currency basis:

                                          Three Months Ended
                                             December 31,
                                         --------------------
                                            2009       2008      % Change
                                         ---------  ----------   ---------


Agricultural equipment net sales (as
 reported)                               $   2,626  $    2,967      (11.5%)
Effect of currency translation                (231)                  (7.8%)
                                         ---------  ----------
Agriculture equipment net sales on a
 comparable basis                        $   2,395  $    2,967      (19.3%)
                                         =========  ==========


Construction equipment net sales (as
 reported)                               $     587  $      695      (15.5%)
Effect of currency translation                 (51)                  (7.4%)
                                         ---------  ----------
Construction equipment net sales on a
 comparable basis                        $     536  $      695      (22.9%)
                                         =========  ==========

The following table presents the change in Equipment Operations full year 2009 net sales as reported and on a constant currency basis:


                                        Year Ended December 31,
                                         ---------------------
                                            2009        2008    % Change
                                         ---------- ----------  --------


Agricultural equipment net sales (as
 reported)                               $   10,663 $   12,902     (17.4%)
Effect of currency translation                  498                  3.9%
                                         ---------- ----------
Agriculture equipment net sales on a
 comparable basis                        $   11,161 $   12,902     (13.5%)
                                         ========== ==========


Construction equipment net sales (as
 reported)                               $    2,120 $    4,464     (52.5%)
Effect of currency translation                   83                  1.9%
                                         ---------- ----------
Construction equipment net sales on a
 comparable basis                        $    2,203 $    4,464     (50.6%)
                                         ========== ==========

Contact Information

  • For more information contact:
    Gerry Spahn
    Investor Relations
    (630) 887-2385

    Ralph Traviati
    News and Information
    (630) 887-2159